A-time-tested-Oil-trade-war-between-the-US-and-Russia-who

A time-tested Oil-trade war between the US and Russia, who wins?

Moscow’s invasion of Ukraine ignited the US. The United States of America sees Ukraine as a friendly country and comes forward as members of the same alliance called NATO. There are three major European countries with nuclear technology. Ukraine, being a non-nuclear member, seeks the support of America. The cold war between the US and Russia for the title of ‘World Power’ started half a century ago and continues. Bullying, defamation, and genocide of the Ukrainian government is the reason for the invasion, says the Russian government. Although it has no evidence, the world sees it as an act of fear. According to political experts, Ukraine’s NATO membership and friendly ties with the US caused the invasion.

The United States of America has imposed sanctions that cause immediate and severe economic turbulence for Russia. The US has also banned Russian oil for their friendly allies, which will weaken Russia’s economy, and the US choses to trade and commercialize as a method of indirect warfare to obstruct Russia’s invasion. Putin’s invasion of Ukraine caused the hike in oil and gas prices in the US.

According to the data given by Reuters, Urals exports from the Baltic sea ports will fall to 5 million tonnes this month from 6 million tonnes in November. The European Union, G7 nations, and Australia introduced a price cap of $60 per barrel, which came into effect on Dec 5 of this year. Russia threatened to cut supply for countries that abide by the price cap put by the US. With the cap on crude oil, non-European countries can import the crude oil but can only ship them if it is sold for less than $60. India, a dominant buyer of Russia’s crude oil, has bought for less than the price cap of $60.

Russia countered the price cap by minimizing the US cargo services and insurance companies, allowing Russia’s oil exports to continue even after the price cap imposition. As a result, the countries purchasing Russia’s oil are limited to Bulgaria, China, India, and Turkey. In some cases, it is sold to export markets below production costs.

- Published By Team Timeswire

Leave a Reply

Your email address will not be published. Required fields are marked *